Willy Woo: "Futures and Shorts are being used to suppress the price of Bitcoin, here's how..." 🪙⬇️

1 year ago
244

This is why the SEC was quick to approve Bitcoin Futures and Shorts but have been dragging their feet and going to court over approving a Bitcoin Spot ETF: The ultra wealthy can play Yo-Yo games with any asset that has a Future or Short derivative without needing to own the underlying asset. It's technically insider trading. The SEC works for the Big Banks and Wall Street.

Bitcoin whales also play a big role in this, like they did during the BTC crash in the wake of COVID and FTX.

Say you owned $100M of Bitcoin, or collectively you and a group of partners own that much, and let's say the price is say $45k per BTC. You want more Bitcoin, and to make a bunch of money in the process.

You would take out a bunch of Shorts and Futures on Bitcoin, betting that the price crashes. You then dump/sell all your Bitcoin on the market all at once while the price is high. The price begins to crash from this surge of liquid Bitcoin. This crash signals other Bitcoin traders to sell their BTC out of fear that the price will continue to plunge. This is a self fulfilling prophecy adding to the flood, tanking the price even lower (more sellers than buyers / supply & demand). Once it reaches the level of those Futures and Shorts you took out, you make a bunch of money. The Bitcoin you sold at $45k each is now worth only $15k each. You then buy up all the Bitcoin you just dumped at a cheaper price, and obtain much more than you originally owned since the price is now low. Gaining double or triple the amount of Bitcoin you originally had. As the Bitcoin dries up and people see a whale scooped up enormous shares of it in a single transaction, it signals that Bitcoin is a valuable asset and more buying in the market begins, making the price rise back up.

You can now play this game again to a much greater effect, since you own even more Bitcoin now, and the game has been reset.

October is called "Uptober" by Bitcoiners because the price typically rises 20%+. So far it has been "Flatober" where we've seen Bitcoin rise to $28k or above then immediately get kicked back down by this Futures/Shorting game. Each time these Whales make more money and collect more Bitcoin for themselves. They can only play this game for so long before the Liquid Bitcoin gets bought up by long term holders who will never sell. This Futures/Shorting game will eventually lead to the Whale losing Bitcoin as it gets bought up by HODLers on the cheap and never reenters the market, then the gig is up for future Yo-Yo games.

This is another reason why you never sell. Especially in a Bear Market. You DCA and Stack Sats instead, taking advantage of this Yo-Yo game. People who sell their Bitcoin very rarely are able to to buy it back before the price surges, since they are not insiders in control of this scam. Buying in a bear market takes away Bitcoin from the Whales and Bankers. Riches are made in recessions. Always buy, never sell, and HODL!

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